E-banking rules set for a major overhaul in Bahrain
“The dynamics of things today, as governed by the Central Bank of Bahrain (CBB) or even usual practices, are more sophisticated and sensitive than any legislation introduced in this country over the past four decades.” said Ahmed Al, chairman of the parliament’s financial and economic affairs committee. Salloom told GDN.
“This does not mean that the country’s financial transactions and transactions are carried out through an outdated system or are vulnerable to security attacks – it is just that things need to be looked at from a future perspective,” he said. declared.
“The country has a solid base and the proof is that we are a leader in Islamic banking in addition to being a financial hub for many banks and that requires legislative flexibility.
“But legislative flexibility can only take the country up to a point, and not apply when everything becomes fully electronic, including checks, receipts and cash flow.”
He said security concerns remain a concern, but international experts could help craft the necessary legislation to address them.
“Electronic checks and receipts can contain forged signatures or be entirely invented, but it is possible even on paper,” said Mr. Al Salloom, who is also a member of the Board of Directors of the Chamber of Commerce and Bahrain Industry (BCCI) and Chairman of the Bahrain Parliamentary Bloc.
“There are concerns about hacking, cyber theft and cybercrime, but these again highlight the need for expert intervention. “
Shura’s financial and economic affairs committee vice chairman and leading economic analyst Redha Faraj told GDN that electronic financial transactions have grown in popularity this year due to the Covid-19 pandemic.
“There is huge interest in electronic banking because people find it easier, more flexible and more reliable – and it shows that the country is advanced,” he said.
“However, several points need to be clarified: do checks constitute actual payment or guarantees; does a scanned copy constitute a financial receipt? is a disclaimer email sufficient?
“Traceability and tracking of cash transactions remains another security concern – whether it’s money laundering, illegal or otherwise. “
The National Assembly, Parliament and the Shura Council will meet for a third term next month.
GDN reported yesterday that CBB, in cooperation with Benefit Company, has launched an encryption service to exploit the encryption function for contactless payment for smartphones.
The feature enables payments to be made digitally through point-of-sale devices using a smartphone.
On August 3, the GDN quoted Industry, Trade and Tourism Minister Zayed Alzayani as saying that Bahrain should have a whole new e-commerce ecosystem before the end of the year.
The national strategy for buying and selling online, currently in preparation, would include new legislation to regulate electronic commerce.
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